JAKARTA (Indonesia Today) – Bank Muamalat, the oldest sharia bank in Indonesia, kicks off its rights issue of 1.99 billion new shares, priced at between Rp425 to Rp750 per unit.
On its prospectus published on Bisnis Indonesia this morning, the company said it targets to raise rights issue proceeds of between Rp849.05 billion to Rp1.49 trillion, used to strengthen the bank’s capital structure and support its syariah financing. As of June 30, 2013, Bank Mualamat’s liability totaled Rp7.69 trillion.
Each shareholder with 37 old shares recorded at November 19, 2013 will be entitled to buy 10 new shares.
Existing shareholders will potentially face a share dilution of maximum 21.28% if they failed to exercise their rights.
Trading of rights is scheduled for November 21-27, 2013.
Bank Muamalat has decided to postpone its plan to launch the initial public offring (IPO) due to current economic slowdown and market’s fluctuation.
With funds from rights issue, Bank Muamalat’s capital will reach Rp4.5 trillion by end of this year, with capital adequacy ratio (CAR) reaching 17%, compared to current 12% CAR.
Bank Muamalat targets to book third party funds of Rp41 trillion this year, a 40% growth. The bank targets its financing to grow by 15-20% this year.